>> form bloomberg's world headquarters in new york, we are covering stories from washington to geneva. the company cutting 9% of its workforce. we will break down the company's results. if donald trump wins the election, the new irs chief. halfway through the trading day, julie hyman is standing by with a look at the latest. e: we have been bouncing between gains and losses for the last several days as investors try to a earnings and the other macro news out there. have&p are higher but they been dancing between gains and

losses. the nasdaq remains under pressure. this has characterized the last week or so of trading. here is the s&p 500. you see every day there's been a little bit of volatility here. y, a tight trading range when it comes to the past week or so, trading as a earnings season has gotten underway. not to session, if you look at one of the areas of strength and health care, that's because we had earnings in bristol-myers, celgene, and alexi on. as for alexi on, that company's earnings estimates partly because of sales of its drug that treats a rare blood disorder. sales of that drug up 9.6 percent. raising its forecast as well. we're watching oil and oil earnings today. itself is higher.

we did have reuters reporting that saudi arabia and its gulf allies are willing to cut 4% from their peak oil output. that is one of the things powering oil higher. then we have earnings from conoco did have reuters reportig that saudi arabia and its gulf phillips, deepening itst spending cuts, and eqt, which is a midstream oil producer. aat company reporting narrower loss that had been estimated to read i also want to mention is tied from what we are seeing in oil, going on with stocks, also what's going on with bonds, we are seeing a global bond rout today. if you look at wb on the bloomberg, that is her world bonds monitor. phillips,i want to point out tn right here. there looking at bonds from americas to europe, the mideast and africa, to asia, and all you see in this column is red.

bonds are falling across the globe today. it is this column right here that is all red. if you look at the bloomberg barclays aggregate bond index, its worst performance in september of 2014. you have trainers in the u.s. looking at the likelihood that the fed will raise rates in december. camecularly after u.k. gdp in better than estimated. vonnie: now let's check in on the bloomberg first word news. mark crumpton has more from our newsroom. donald trump won't commit to working to hillary clinton if she's elected president. he spoke to george stephanopoulos earlier today on abc's "good morning america. >> i'm not saying i and -- i'm not or i am. hopefully i won't have to make that decision. mark: meanwhile secretary clinton has called mr. trump,

quote, whatever happens, we need to work together afterward great she sidestepped the question of whether she would meet one-on-one with trump after the election. first lady michelle obama campaigned with ms. clinton at a winston-salem, north carolina. the clinton campaign described so first lady as its not secret weapon. her appearances have been critical to clinton's efforts to secure support from female voters. the search for an oklahoma man wanted for a series of shootings and carjackings is in its fourth day. officials say it's possible the man died after he was wounded during a shootout with police. the british economy overcame concerns about the brexit vote and grew faster than economists forecast in the third quarter. gross domestic product rose 1/2 of 1%. construction and production fell. that was more than offset by an 8/10 rise in services.

it was the 15th straight month of growth in the u.k. global news 24 hours a day, powered by more than 2600 journalists and analysts in over 120 countries. i am mark crumpton. this is bloomberg. back to you. david: deutsche bank at barclays reported profits in the third quarter. the two firms earnings were boosted by bond trading. both firms are trying to settle fines with the u.s. department of justice. earlier today the imf managing director commented on the will.an banking sector >> the european banking sector has been through a lot of improvement in the past few years and strengthened its capital position, as indicated. as far as international bank systems are concerned, they are under much stronger and

systematic supervision by the authorities. i think it's certainly a reassurance to the markets that they are in better health. clearly it has to be continuously monitored. the status of the economy will have an impact as well on banks and it will have an impact on the nonperforming loans. in southernme banks europe which have a strong percentage of nonperforming loans. and must be frustrating for you to see how weak global growth is feeding into a political climate that is growingly against free trade and globalization. is that going to get worse in 2017? you describe is

frustrating because we know it is counterproductive. it is not by withdrawing behind borders, by reducing trade, than the situation is actually going to get better. equally we think that international trade, globalization, has to work for all. it cannot just work for a few. the rest of the population. it has to work for all. that means probably reassessing those who lose out of globalization, those who are left to the side of the road. policymakers have to make a determined effort to improve the education, to equip the people, to provide the safety nets. that will guarantee that people benefit from international trade and globalization. >> what's going on with the possible hard brexit, how would that impact the u.k. in europe? damaging first and

foremost is the uncertainty, what will be the relationship. will the financial institutions which have been the strength of london continued to benefit their passports to continue to deal with the rest of the european union, particularly the eurozone. where will be the centers of european banking strength, supervision, and all the rest of it? that is what is really undermining the current situation. , the fact that one country which was a member of the 28 is going to adopt a separate path. having new rules. possibly relying on the wto standard set of rules with other members, which has been the core of its trading relationships, is another big question mark on the horizon of those who want to know what the future will be before they invest, before for

the create jobs. 1/2 years we know the situation is unchanged and yet everything is changed. it is a contradiction of everything is unchanged but everything is changed, which will have to be addressed in the best possible terms by the parties. across theake you united states, where we might have a rate hike by the federal reserve. is the world ready for a normalization of interest rates by the adderall reserve? even though the u.s. economy might be ready, the rest of the world might not be. , and there was such a hike presumably very gradual, ,hased-in and well communicated it would mean the u.s. economy is faring better. it would meet employment is higher. those are strong positives for

the global economy. that is a positive. developing countries, emerging market economies have you heard that option already. they have done that a couple of times. i think you are much better prepared in terms of monetary policies, tools they can use, in terms of credential measures they can adopt, in terms of response, to what will inevitably create capital flow and probably will draw some capitals out of those markets that to the u.s.. >> if i could take you to the region, egypt's one of the country's high on your agenda or it's going to a foreign crunch at the moment. you said egypt needs to move on certain policy options. doesn't each of need to have enough foreign reserves to meet the expected demand from a devaluation? we strongly welcome the fact

that the egyptian authorities are deciding to address those issues. it is the egyptian authorities for the egyptian people for the egyptian economy. we welcome that. if they decide to move forward, we will certainly support that it, wee will accompany will put money on the table to help them along the way. but it is their call and their decision. in terms of exchange rate, there is currently a crisis because if you look at the official price, if you look at the grey market price, there is 100% difference. that needs to be addressed, and we believe the authorities are right to prepare for that. david: the country does moving forward, they will be in line to receive a $12 billion loan from the international monetary fund.

that was christine lagarde in riyadh, saudi arabia. vonnie: coming up, twitter reporting better-than-expected earnings. this is bloomberg. ♪

vonnie: this is "bloomberg markets." i am vonnie quinn. david: it's time for the bloomberg business flash. the british government will not give the biggest automaker in the u.k. any special deal today. support and assurances from the government persuaded the company to keep investing in its factory in sunderland. the government said that support does not involve compensation. the u.k. will get the guest -- get the best deal possible.

cyrus mistry's family does not currently plan to sell the holdings. if they do, the new investor will be a friendly party. a much-needed lifeline to boeing. the company ordered 14 of boeing 747 jumbo jets. the deal is valued at $5.3 billion based on list prices. ups would deploy the front loading cargo planes on international routes while shipping earlier model 747s. and that is your business flash update. vonnie: twitter reported earnings this morning the estimates. this also announced spending 9% of its workforce, meeting new profitability goals. twitter is in limbo over its future. potentialplored three -- three potential suitors

decided not to bid. what's next for the struggling social network? sarah, we got the news yesterday is a dumbedt, which down version of twitter with photographs, some would say, is valued at $25 billion to $35 billion. suddenly you have twitter, which had three suitors, not having any suitors. what is going on? sarah: what you are seeing is the difference between growing and not drawing. snapchat is going really fast. , andng up audiences twitter is not. their sales growth was 8% this to 58% in the same quarter last year. that's a big drop-off. what people are looking at here is a company that needs to prove that if it's not going to grow cankly anymore, at least it to

attempt to re-accelerated and that's what we saw a little bit in those numbers. twitter made the promise of that by 2017 table aim for profitability and the cuts to the 9% of the workforce are adding to that. ,avid: the story with facebook now the story with twitter is that video is doing well. is that an indicator can that is enough to assure investors that the company is getting back on the right track? sarah: for twitter it is an important strategy to the video streaming. it brings in an audience that doesn't necessarily have to toate an account, decided follow. all those cumbersome things that come with starting to use twitter. they can come in to watch and nfl game or the presidential debate, and twitter gets him as an audience and can advertise to them without having to retain them as a regular user. that opens up a lot more doors for the company, especially in

terms of advertising revenue. we have yet to you if that's going to be accelerate here. twitter has been around longer than snapchat. it is allowed to have a cause. at some point that could get reignited as it moves into a different market to what is the session here? it seems silly. that is why investors pay such big premiums to own these stocks. twitter still trades at a high premium despite the decline in stock price compared to other media companies. they did at the offset of their initial public offering in 2013 was framed themselves to be compared to facebook. now facebook has grown incredibly fast. they are still growing, even at 1.7 billion users. has a lot of crisis in comparison.

they are huge, they have more active0 million monthly users. they are at the center active users. they are at the center of the presidential election this time around this year. they are becoming increasingly vital to society and yet they are growing as fast as some competitors and they aren't growing their revenue. david: you have written about the divide within the company, whether or not they should score selling or not. by virtue of the fact that suitors walked away, does that --ve to be a sarah: jack, when he was brought in, the cofounder, he had the moral authority to make these decisions if he needs to. now without a lot of changes being made on many fronts, he can say, we are going at independent, these are the things we need to do.

cutting of the workforce, that's one of the things they had to do. sales process happen. maybe it was a rude awakening for them. they probably thought if they wanted to sell, they could. but a suitor came knocking on the door. they had strategic conversations with three potential bidders and none of those bidders thought it was a good idea to buy them. now they really have to prove it great -- it. vonnie: tank you -- thank you. david: this is bloomberg. ♪

trump yesterday donald

cut the ribbon on a new luxury hotel on pennsylvania avenue in washington, d.c., the latest addition to a vast real estate empire. it highlights the prospect of a presidency that would be riddled with conflicts of interest. i would trump negotiate these tests? -- how would trump negotiate these tests? how much is this campaign prepared for this eventuality, the kinds of conflict of interest concerns that would come up if he were to be elected? know littleings we about. for example, his tax returns. how is the family preparing for this? >> there hasn't been a lot of actual preparation for a trump presidency. what he has said he's going to do is if he wins the presidency, he will turn it over to his aildren and not put it in blind trust. obviously his children are very involved in his political affairs. they are policy advisors for him.

it's very clear that if he were to win the presidency, his children would also have his year and if they are running his businesses, there are a lot of questions about how they might advise him, whether they would advise him in ways that might help promote his businesses. he has more than 500 different business interests and more than $630 million in loans that have been given to him and his businesses by different financial interests, including financial interests that are being investigated out by the current administration. vonnie: they seem like a cohesive unit. the children, at least. >> definitely. we saw yesterday, donald trump and his entire family cutting the ribbon on a new hotel just a few miles from the white house. the lender behind that project is a lender that is currently in negotiations with the justice department over some mortgage that have gonees on in the years passed.

it's very interesting to know what kind of advice is children would give him if he were the president and if his administration was pursuing those negotiations on what to do with that lender and how aggressive to go after them. david: the current commissioner of the irs retires at the end of 2017. he said he would retire immediately if asked to by the president. how big of a conflict of interest is the tax issue for donald trump, and are there indications that he would ask the commissioner of the irs to resign? it's hard to know because not releasedhas his not released his tax returns. apparently that audit has been going on for a while. he would potentially be appointing the new irs chief, who would eventually be overseeing the very audit that he's undergoing on his business. that would propose another conflict of interest. trump hasn't said that he

would keep the current irs chief. he has been very aggressively against president obama's irs. vonnie: trump what about the trp brand name? >> does a lot of questions as to how closely donald trump continues to associate with his brand. we have seen his children and his business have moved forward with a new brand called psion, which is shifting away from the trump name. that is aclear that question that donald trump and his children would have to consider if he were to become resident. -- president. vonnie: coming up, international papers, ceo's talk about the big business of diapers and container boards. this is bloomberg. ♪

david: live from bloomberg's world headquarters in new york, and david gura. vonnie: i'm vonnie quinn.

mark crumpton has more from our newsroom. mark: the united nations will make another attempt to evacuate nearly 200 wounded people and to deliver food and medical supplies and to the besieged syrian city of aleppo. airstrikes by russian and syrian government planes have been halted for 9 days in expectations of the evacuations. there havels say been no safety guarantees for the evacuees. has cut into hillary clinton's lead in michigan. clinton has a seven-point edge over trump according to a poll.t free press xyz tv johnson getsary 9%, the green party's jill stein has 3%. donald trump is again raising the possibility of election rigging. he tweeted quote, there were a lot of colin's about vote flipping in texas boat boots are

he said there were long lines, and people are quote, not happy. some social media posts claim tot trump votes were flipped clinton votes. today is a day of rest for the cleveland indians and chicago cubs after game two of the world series. the teams have won a game apiece following last night 5-1 victory by chicago. game three takes the contest to the friendly confines of wrigley field on friday. global news 24 hours a day, powered by more than 2600 journalists and analysts in over 120 countries.. i am mark crumpton. this is bloomberg. vonnie? vonnie: a quick check on u.s. stocks, the indices not too far removed from where they were earlier in the day. the dow is up 20 points, that's . gain of .he nasdaq is down 2/10 of 1%

let's get more life on a nasdaq market site. opening after him modestly higher for the nasdaq today, we had the index lower. this has been true since about midmorning. one of the big drags today are the shares of alphabets, the internet giant reports today after the close. investors are looking for a dollar $.61 per share in point $2 billion in revenues and most analysts seem to think the company is likely to put up an in-line quarter driven by strong ad revenue growth. james over at wedbush has a different idea. he says his check indicates that search growth could moderate. he has an underperform rating on the shares of alphabets. this suggests it he proves true, this stock recently trading at all-time highs. priced to perfection, if they put up less than a perfect order and guide, it could ding the

stock. as for a stock trading higher on an earnings report from yesterday, tesla 1%. the company put up a big beat quarter. they made $.71 per share versus the estimated loss of $.54. billion dollars in revenues, beating the consensus estimate by 21%. they also reaffirmed the second half vehicle delivery target of 50,000 vehicles. bloomberg intelligence analyst is saying that some of that strength could be driven by discounting of the vehicles. jpmorgan is saying that large zero emission vehicle credits drove that strength. there is so much uncertainty around this tesla story. we go to the bloomberg and take a look at g #btv. we see these wild swings, especially in the beginning of the year, talking about how uncertain investors are. over the last several months we have seen this range tightening

into a coil. we showed this chart yesterday in a preview of tesla talking about the idea that this range is getting ready to spring. the stock hit the top of the range but it suggests there is still a big move ahead, whether it's up or down is unknown right now. for thehe big overhangs stock, what will the model three companyplus, can the meet it's really big target of delivering more than 1/2 of 1 million vehicles per year starting in 2018, relative to the roughly 50,000 delivered last year. lots of questions still ahead for tesla. vonnie: abigail doolittle at the nasdaq. thank you for that. bloomberg's erik schatzker spoke to the capital management cofounder tom wagner on bloomberg tv and asked him about finding distressed debt opportunities. >> the key in investing into

stress is to wait for the opportunities. they occur in different sectors. sometimes they occur at different parts of the credit market. we found in the last few years terrific opportunities not only incorporate distress, but sovereign distress. i would characterize that as things like greece, argentina, number ofico, a different situations where we found compelling investment opportunities in what we do as sovereign distress. >> how would you describe your state of patients? giving you the breathing space that you need to be patient? or do you feeling there is a fire under your behind and you have to invest? >> i think the only time we feel pressured to invest is when you see the broad credit markets trading at very high yields. like january or february. if you want to know what's the risk you are putting into the portfolio, the nature of the

risk. any other point in time, our investors want to know that we to find interesting investments. they are comfortable with us patient. there are points in time like the present time where you have to rely on a level of patients to wait for the next great opportunity. >> you mentioned a number of sovereign opportunities, like puerto rico. you've been in this market since the late 1990's. is this where you have to turn now? >> it's a place where you will look over time to find new and interesting opportunities and ideas. we have been heavily invested in puerto rico, specifically in the water and power companies there. we've been invested in argentina. we remain very bullish there. they think the sovereign debt remains on a relative asus extremely attractive. >> what about venezuela? it's interesting, the similarities exist in that

argentina, the catalyst was a administration led by moncrief, who was a reformist and capitalists. in the case of venezuela, you have a leadership that is pursuing a strategy that is admy not going to be as friendly. >> but the kershner administration in argentina, you could liken it to the administration in venezuela. in order to invest in venezuela, you have to have some confidence that they will make the transition. >> do you have it? >> we not going to be as friendly. think it will happen over time, and there will be some interesting opportunities there. >> that was our cal league erik schatzker. -- colleague erik schatzker. the company saying its industrial packaging unit was hurt by higher input costs, even as -- turn at to .6 million tons

of her gated packing. that was an increase from the same period a year ago. joining us from memphis, tennessee is the ceo mark sutton. in spite of investors may be not taking it so well, it was a solid performance and congratulations. how do you manage with the higher input costs and how will you hedge that going forward? solidturned in a very quarter. strong demand for our corrugated packaging product, our biggest business. squeeze.ve some margin recovered fiber, which we use as part of our recycled fiber mix. costs rose faster than we thought they would. we do have a price increase that has been announced and we are in the process of implementing it. we think that will help alleviate the margin squeeze as

we go forward into the fourth order and 2017? david: how challenging will that be?e >> think the low growth environment for current gated too.ging may be maximum i think the real fundamental of supply and demand, input cost, and the overall demand, it's never easy, but we we have participation in almost every segment you can imagine. we will continue to work through our individual customers over the next few months, and achieve these prices. vonnie: you were speaking with the ups ceo earlier. send thingsboxes to in. >> that's a great question. the online retailing and shipping and distribution part

of the packaging business has been our strongest. we have seen growth upwards of 20% year-over-year. major player in almost every one of the suppliers, supply chains in online distribution. are excited about the increase. we've seen that increase over the last several years and we are anticipating, as our customers are telling us to get ready for their packaging. david: you raised your common dividend by 5%. should we read anything into that about your growth expectations going forward? >> i think on the dividend, it is our fifth consecutive increase. prior increases were a larger percentage. we do have a dividend policy the our free0% to 50% of cash flow. our dividend is now at $1.85. you generated strong cash flow for several years. the way we look at it is the 5% increase coming off of 4 and double-digit increases is

additional confidence we have in our ability to generate a strong cash flow going forward. vonnie: what changed in the last 2 years in terms of market focus and capital allocation? are you looking at the new administration before you make any decisions? >> our focus really has been on our business model, which is renewable natural resources that we add value and convert into consumer-oriented products. from the standpoint of the geopolitical environment here and abroad, we obviously monitor it. these products are based on the health and well-being of the global consumer. we continue to see that improving over time, albeit slow in some cases. it is an improving market for us, whether it is here in the u.s. or in markets in asia, europe, and latin america. david: you had the warehouser acquisition. when you look at the m&a landscape, is there a lot of

opportunity there? how constrained are you by your market share? >> in the warehouser acquisition, which we are heading towards a close hopefully in the fourth quarter, that is for spealty fibers that go into absorbent products like baby diapers and other hygiene products. we will have a strong position, that is a very technical product. there are opportunities for further consolidation globally in certain products. in the fiber-based packaging there is more opportunity. we have to get warehouser onboard and fully integrated and get the synergiewe committed to before we think about anything down the road. vonnie: in terms of growth, we talk about the labor market constantly now and the federal reserve raising interest rates in december. do you see any change in your labor force? how will the 25 basis point increase affect your business? i think the primary effect on

our business is what i said earlier, how the consumer is feeling about their own situation in life. rising wages helps our business because it makes the consumer more active in the marketplace. i think a small interest rate won't make a huge effect on our business. it's really the overall effect it will have on global economy. for us, it's on the demand side. david: in a few minutes, our colleague mike mckee will sit .own with mike froman i wonder what your message to congress is on how a important a deal like this is. i worked a lot on this with inple over the year washington. it's important to our company and economy. we export between 20% and 25% of what we make in the u.s. mys 7000 direct jobs in company and another 3000 to 4000

in my supply chain. we have private land ownership. our products are made out of renewable natural resources. our business model is very competitive. we need access to these overseas markets. in the case of the transpacific partnership, we were able to put into that agreement where we can manage to keep illegally logged wood out of that supply chain. that is tremendous for our industry and our workforce. we believe access to these wekets is important, and will continue to work for a balanced set of trade agreements because it's really important for our company and our industry. vonnie: thanks. caligula'sng up, tom nwew restaurant. this is bloomberg. ♪

vonnie: you are watching bloomberg. i'm vonnie quinn. david: i'm david gura. here is what we are watching. the threat of an oil crisis fades great we will hear me out -- here more on the decision from norway central bank governor. vonnie: snapchat is said to raise funds in its public offering. new details ahead. world'shile the waistlines expand, health bills the lumen. the impact of obesity. vonnie: in norway, the central bank decided to keep its benchmark interest rate unchanged. the bank scratches plans for more stimulus. norway's housing market is heating up. the governor of norway's central

banks spoke to bloomberg. development in the norwegian economy and the environment affecting the interest rate has been more or in line with the picture we had in september. background for keeping the rates unchanged. david: folks leg and suffered a setback in its year-long effort to rebound from the diesel emissions background for keeping the rates unchanged. scandal. vw's biggest profit contributor, audi, cut its outlook because of costs related to the emissions scandal and recalling affected cars. some surprising news from tesla, the electric carmaker reported an unexpected profit for the first scandal. time in two years. tesla said, expect to get through the rest of the year without taking in cash. snapchat will try to raise as

much as $4 billion in its planned ipo. the los angeles-based covenant makes an application for sharing selfies and videos. a public offering could value snapchat at up to $35 billion. vonnie: time for our bloomberg's quick take. 40% of adults on the planet are already overweight or obese, and more joining their ranks every day. here's the situation. in the u.s., the average american woman now weighs 166 pounds, equal to what the average american man weighed in the 1960's. researchers estimate that excess weight causes 3.4 million in debt. the rates of diabetes and cardiovascular disease are on the rise. an estimated 422 million adults had diabetes in 2014, compared with 4.7% in 1980. the rise of obesity coincided with the expansion of food supplies and easy to access,

processed food. at the same time, many people are less physically active than their ancestors were. in the u.s., many americans spend their working hours chained to their desk and eat fewer of their meals at home. the combination of a lack of exercise and calorie heavy diets loaded with sugar, fat, and salt, has led to expanding waistlines. the united nations has called for a global effort to end the rise in obesity by 2025. researchers say the chance of meeting that target our future -- virtually zero. there have been some successes in reducing childhood obesity and the u.k. and the u.s. through education and efforts to limit salt and sugar. most scientific research says that eating less is the best way to drop the pounds. in october the world health organization urged all nations to consider a tax on sugary

drinks. california, philadelphia, and pennsylvania now have sugar taxes. you can read more about obesity in all of our quick takes on the bloomberg. that is your global business report. had to bloomberg.com -- head to bloomberg.com for more stories. david: coming up, erik schatzker sits down with the starboard cofounder. this is bloomberg. ♪

david: the restaurant is located

in manhattan's financial district. reports. kelly belknap walked into the building, i looked around and i knew this would be an exciting project. >> this is tom colicchio's first restaurant in new york city in years. tom: the place really spoke to us. >> the restaurant is in the beekman hotel, a land mark building recently restored to its 19th century splendor after three years and $350 million. >> this transports you into new york at a different time. colicchio, the food is a throwback to the late 1970's, when he was a young american chef, learning to cook in the french tradition. i think it's one of those

dishes when we talk about a i think it's one of those dishes when we talk about a throwback idea, it's a modern dish but it definitely has its origins back in time. >> the old world and you and setting said fowler and wells apart from other colicchio establishments. thisof the reason i love project is because it is so different than any of the other projects we've done. most of our restaurants have or a spinoff of the craft brand, which has a very specific aesthetic. >> katie grieco has been working with colicchio for nearly 2 decades. because we had our craft hat on for so many years, you look at something and you think, we are not doing craft. >> fowler and wells is not craft, but colicchio needs it to live up to craft's high bar.

>> i want people to walk through the doors and just relax. sit back and one of the chairs, have a cocktail. david: that was our colleague, reporting.ap head to ni pursuits go on the bloomberg. us to discussins the latest on the transpacific partnership and the election, coming up. this is bloomberg. ♪

york, it's 1 p.m. in new and 1:00 a.m.and in hong kong. vonnie: this is bloomberg

markets. from bloomberg world headquarters in new york, we are covering stories domestically and london and even hong kong. michael frohman will be with us to talk about the election season. alphabet earnings are out after the bell and we have the chart you cannot miss straight ahead and before the results. are being called stupid. there is a new report out and we will discuss that. we are halfway into the trading day and julie hyman is here with the latest. bouncingocks have been between gains and losses all day but we are seeing a remarkable route in the bond market not

just in the united states but around the globe. the ten-year treasury is an example. highest since may and a movement of six basis points. are seeing a continuing movement of expectations for the federal reserve to raise rates in december. other central banks around the to think thatting stimulus is coming to a close. the stimulus and treasuries is not necessarily new. it has been going on among foreign holders. the saudi and chinese treasury holdings have been trending down since the beginning of the year. if you look at bonds in the united states versus docs over the past three months, this is the 10 year note yield which goes up as prices go down. it does not tend to happen in tandem. the selloff in stocks has

coincided with a selloff in treasuries which is unusual to some extent. let's look at what we are seeing in stocks. it's a mixed picture as stocks up and bouncing between gains and losses. people are waiting what's going on with earnings but also in the rate market. in the s&p 500, health care is holding up well. financials are stronger also. utilities and real estate are the two weakest groups today. these happen to be the groups that are the most interest rate sensitive. for the past four months those two groups in the s&p 500, you can see the selloff has been happening. today people were paying attention to earnings and watching oil prices but rates more and more are something

investors are keeping an eye on. david: thank you. let's check in on hillaryrd news --mark: clinton leads donald trump in the battleground state of pennsylvania. a new york times siena college 68% and donaldat trump at 39%. president obama will spend almost every day on the campaign trail in the final week of the election. in addition to making the case for hillary clinton, he will ramp up efforts for democrats in includesot races which making robo calls and radio spots and endorsements.

+++ settle claims related to a 2015 derailment in philadelphia. eight people were killed in the accident and more than 200 others injured when a speeding train went off the tracks as it rounded a curve. lawyers say people will have their awards in hand by june instead of going through years of legal maneuvering. in china, the communist party has elevated the status of the president advance of next year's power shuffle. the president has been designated a as the core of the party and he can then install his own people in positions for next years party meeting. global news, 24 hours a day, powered by more than 2600 journalists and analysts in over 120 countries. let's go over to the white house north lawn. there, thehman is u.s. trade representative. michael: trade has been a centerpiece issue in the campaign for president. the transpacific partnership has been a lightning rod for criticism. whoael frohman is the man

has to sell it to congress and thank you for coming out in the rain. maybe that is a portend for how things are going. two presidential candidates do not like the agreement. mitch mcconnell says it will not get a vote. the administration does not want to give up. >> we are focused on getting it done because there is so much at stake for american workers and farmers and small businesses. it's important but usb the one setting the rules of the road in these markets. this is the time to get it done precisely because there is so much uncertainty about the future. the president is committed to doing everything we can to maximize our chances of getting it done. is a risingre anti-populist view around the world these days. how do you sell it? >> trade politics are hard. there are legitimate concerns underlying the politics. incomere concerns about

inequality but trade agreements is how we shape the global economy. we are already an open economy and face barriers and other countries. by doing these trade agreements, if we can eliminate the barriers ,nd raise their standards intellectual property rights and create a fair and level playing field for our workers and worms, we cannot put globalization on the back runner but he proactive about shaping it. if you accidentally stumbled into a donald trump rally, what would you tell the people there? if you look at eric economy, we are producing more manufactured product right now than we ever have in history. we are doing so with fewer workers and that's largely because of automation. trade agreements is how we shape globalization. doing nothing and sitting back and letting the other countries operate on an unlevel playing

field is not in our interest. it's our interest to be out there proactively and not leaving it to china. other countries will move ahead with their own trade agreements we will find our products are excluded from markets. we will lose the upside of exports but we will find our exports are cut because china and others will have preferential access to other markets. they will have a set of rules that don't play to our interests like the digital economy. our economy is dependent on the tpp flow of information and is based on that information flowing freely. michael: do you think trade deals are too toxic for a new administration? >> i will not comment on any candidate or the political campaign. tpp is a world-class agreement. it raises wages, increases jobs,

it's in our national security interest. you can hear that from leaders around the region who are scratching their head wondering why the united states is considering giving up its leadership position in the world. why would we hand the keys to china instead of asserting ourselves? this would seem even thatcult with europeans they can barely get a trade deal done in europe with canada. >> that is a cautionary tale. i assume it can get worked out one way or another. from the eu trading partner perspective as well as commentators across europe, it's important to know whether the eu has the mandate and a clear process were being able to negotiate and approve agreements it enters into. we're all watching and looking to see whether that's the case. we have trade politics on both

sides of the atlantic. process have a clear for congress to consider trade agreements and we have the leadership of our president and our administration to make the case for trade. those are important elements in trade credibility behind the negotiations. michael: how hard is it going to be for the united kingdom to strike at trade deal with the united states given the politics out there after brexit? their priority has to be defining their relationship with the european union. until that is further down the road, we don't know whether the u.k. will have sovereignty over tariffs or regulations. therefore, it's impossible to negotiate with them right now. it's also it illegal for them to sign agreements until they are out of the eu. their focus now should be on defining their relationship with the european union. the trade minister said

yesterday we may have a trade war with canada under way soon over lumber. >> this is a long-standing issue the goes back a couple of hundred years between the united states and canada. we are engaged to try and find a solution. our leaders have agreed that whatever the new agreement is is that we should make sure the canadian exports to the united states are maintained at or below a particular market share level. we have made a number of proposals met regard. thank you for coming out in the rain at the white house. we will send it back to you. vonnie: michael mckee, that was a wonderful interview and thank you for that and thanks to the u.s. trade representative, michael frohman. some of theg up, big tech names report after the close today. we will drill down the revenue streams today. the numbers don't lie.

this is bloomberg. ♪

david: you are watching bloomberg markets. latest it's time for our business flash. barclays wanted to billion into itsp investigation on its mortgage securities. barclays wants to whittle down the payments. they want to fight the doj in court. the federal communions -- wantsications commission

new rules for broadband providers. cost a companyd residual ad sales. the numbers to buy previously owned u.s. homes went up. it keeps prices high. that is your bloomberg business flash up date. google has spent years making a case to wall street that its investment in not advertising businesses will eventually pay off. alphabet posted results that suggests it's starting to happen and we check out alphabet in the numbers don't lie. moneymaking units are tied to advertisers and i still going strong. it $2.2mped 33%,

billion in the second quarter. the cloud is part of the alphabet effort to increase sales. it was responsible for more than $19 billion of $21 billion of revenue in second-quarter sales. local ad sales and youtube are stalwarts. nearly 182 million users have kept them apace with facebook. youtube has a commanding lead in online video watch time. users watch on average more than 300 million hours of video each and every day. the net ad sales are respected to rise 21% and grow even more in future years and part of that growth could come from the new

live tv streaming furnace -- service for you to. google hopes to cash in on the rise of the virtual and augmented reality industry. the company released a virtual reality headset that is cheaper than other options on the market. larry page is making this move. we will be following alphabet results when they cross after the close today. vonnie: thank you. johnsono bring in cory who joins us from los angeles. it seems like companies in the are faltering, what can they do to capitalize? cory: google continues to crank out. the thing i pay the most the adsn to add google

are driving the business. the two trends govern the success of business and google nets the number of ads clicked on which should grow over 20% in this quarter. and the value of those ads, the cost per click. we don't know the value itself but they give us a sequential and year-over-year percentage change in the number of ads clicked is going up by better than 20%. the value of those ads is been coming down all stop google suggested the value would stop going down but the company has added new types of cheaper ads into their makes so the result is the value of each ad will fall likely by 6% in the quarter even as the number of ads increases by 20%. stop the value from falling, it could lead to a

better quarter and better guidance. david: we got news yesterday that the access program for alphabet cut 9% of its staff. what does it say about the moonshot ambitions? it has come up quite a bit because the cfo has focused on .ost reduction they look at these moon shots and they have been breaking down the numbers so we can see what's happening but the biggest success has been the google fiber business. for the most part, it has not in about laying new fiber, it's been about finding dormant optical fiber networks around the country and lighting those up and putting them to work the business is difficult to grow because it's expensive. where that sits in the universe of google is a big question. it's a different kind of business and likely not pick kind of business that can go on

income statement. cable companies have their own peculiar way of using cash to show low profits and high ebi dta, competing in that industry is a weird fit for google. toid: a lot to look forward on the call and in the report. cory johnson, thank you so much. vonnie: breaking news on century link -- let's go to julie hyman. these two communications networking companies are in advanced talks to merge. level three shares are spiking by 60's -- by 6% and centurylink shares are doing likewise. the wall street journal is citing people familiar with the talks between these two companies. there has been quite a bit of merger and acquisition activity.

sizablee pretty companies, about $13 billion each. it's not clear who would be the acquirer in this particular situation. the percentage gain in century link versus level three would seem to indicate that it would be the potential target. we will keep you updated on any developments are headlines on this story. vonnie: thank you. still ahead, apple is rebalancing its mac line-up and we will have the latest headlines from their product event. this is bloomberg. ♪

david: this is bloomberg markets. vonnie: apple is unveiling a slew of new mac computers at a news conference in cupertino.

us from sanjoins francisco with the latest. what is the excitement so far? emily: hey there, apple has yet to unveil the new mac but we are expecting them. what they have unveiled is a new tv app. presumably, if you have an apple tv set-top box, you can use this app on your other devices to watch apple content. it will recommend things and you can search and discover things. they had a couple of folks from twitter on stage. twitter is coming to apple tv. it has been live streaming nfl games and it appears you can now watch the live events via your apple tv box given this partnership from twitter -- with twitter. -- weect th kne

expect a new lineup of macs, specifically the update to the macbook pro. this is the highest end laptop and has not been overhauled since 2012. it will be thinner and lighter but most importantly, we believe the function keys of the top of the keyboard will be replaced by a screen and touchscreen button that will change based on what app you are using. we expect potentially a new version of the imac and a new version of the macbook air which is the cheapest laptop you can get from apple which is why it's important. david: we had earnings from intel recently saying there has been a decline in the last few come -- in the last few quarters. when you look at the apple business, where does hardware laptopstops sit? emily:

still make up 10% of apple revenue and it's the second-biggest category after the iphone. when the ipad came out and when tablets came out, they thought tablets would cannibalize the laptop market but that's not what happened. we have seen the tablet market plateau if not slow down. the laptop market has held steady. you are seeing all different kinds of people whether they are professionals or your average joe wanting to use their laptops. it's a category that microsoft continues to take aim at after unveiling their surface studio. pc sales are still in the klein around the world but you are not seeing that happen -- are in decline around the world you are not seeing that at apple. siri behat role will playing? voice recognition

software is playing a huge role in these apple products. on the new apple tv that was in veiled this year, you can search for your television shows with your voice. technology is very much in the early stages. to be anainly going area where we expect more innovation and the user base to get better. emily chang in san francisco, thank you and we will have the top tech headlines on bloomberg technology at 6:00 p.m. david: tesla motors posted an unexpected profit in the third quarter. we will speak to a ubs analyst next. this is bloomberg. ♪

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hospital and doctor coverage with prescription drug coverage, and extra benefits all in one complete plan for a low monthly premium, or in some areas no plan premium at all. other benefits can include: $0 co-pays for an annual physical and most immunizations, routine vision and hearing coverage, and you'll pay the plan's lowest prescription price, whether it's your co-pay or the pharmacy price. or pay zero dollars for a 90-day supply of tier 1 and tier 2 drugs, with home delivery. don't wait, call unitedhealthcare or go online to enroll in aarp medicarecomplete. vonnie: live from bloomberg world headquarters in new york, i am vonnie quinn. david: let's get a check of the headlines.

mark: a senior advisor to donald trump tells bloomberg businessweek the campaign has three so-called voter suppression operations aimed at lowering the turnout for hillary clinton. the campaign is targeting white liberals, young women, and black voters, three groups critical to the clinton path to the white house. first lady michelle obama campaign would secretary clinton for the first time today and early vote rally in winston-salem, north carolina. the clinton campaign describes the first lady as the not so secret weapon. to thebeen critical clinton efforts to secure support from female voters. the justice department is charging 61 people in the united states and abroad in connection with a call center scam based in india. colors posed as tax and immigration agents threatening arrests, deportation, or other punishment unless money was paid. the scam tricked at least 15,000 people shelling out more than

$300 million. british businesses want the government to spend more and infrastructure in the wake of the brexit vote. wants -- they want the government to boost improvement to 3% of gdp in the lobbying group says they should look forward with more than $500 billion in roads and rail projects. day,l news, 24 hours a powered by more than 2600 journalists and analysts in over 120 countries. david: thank you. ford motor company beat estimates with its third-quarter earnings this morning. it was down over the same quarter last year. $.20 more e than than people expected. the president and ceo spoke to bloomberg television earlier and gave us a closer look at the numbers. >> when you look on a year to

databases, our pretax is about the same as last year. last year was record earnings. we are reconfirming our guidance for this year which is about $10.2 billion in pretax. once we deliver that, [no audio]

for the foreseeable future, we will be in investment mode. we said we were going to be down next year but our core business would improve but clearly the investment we are making in the emerging opportunities whether it's electrification or autonomy or mobility will impact our earnings. further out, those businesses will start contributing to the company's bottom line. in the quarter, we made two important announcements. the acquisition of chariot which is a shuttle service in san francisco. we will roll that out globally. also announced our intent to have a fully autonomous vehicle in a ridesharing service in 2021. we're making great progress on becoming an automobile and mobility company. you mentioned electrification and autonomy and ridesharing. of those three elements, which do you expect to start returning

positive earnings first? an exact timet frame in terms of where each one would cross the finish line. we are clearly making the appropriate investments and are intent on each of those to return positively to the company in terms of profit contribution. when you look at things in the mobility space, they are less capital intensive. we get good returns on that. david: that was the ford president and ceo mark fields. let's turn to the tesla surprise. it reported an unexpected profit for the first time in eight quarters. they sold zero emission credits to other automakers. i want to ask you about your recommendation. you saw the profit that we did see in the last quarter and many analysts did not see that. what led you to that conclusion? >> part of it was the credits.

there was a release showing year-to-date credits were quite high so we thought there would be prophets there and it's a complicated quarter. there is a change in the way they report. they are asked to accounting adjustments. the zev credits, it was a loss in the quarter and there are challenges ahead. vonnie: is there any point in 10 is the reporting numbers like this? are they trying to be a little deceptive? why do this? it will eventually need to do a capital raise and show results. i think the timeline is pretty long until you get to the model three. they have another three more quarters at least if they can hit their target. you need to show positive free cash flow. i don't think there is anything deceptive but they were focused. on the cash flow side, there is a working capital benefit. capex came in significantly

lower. the cash flow is better than expected but when we look out, we think there will be significant cash burn in q4. i think they wanted to demonstrate what they can do but cash burn will be an issue going forward. david: the zero emissions credits were important, how important were they and to what degree is tesla relying on him going forward? >> it was $139 million so if you it was critical in the quarter and a very large number. as you go forward, the sustainability is not ongoing. it's definitely something more of a one time event. did we get any updates

on the elon musk arrangement? >> there will be a little release on friday and they will do an event showing future products between the residential and solar products they will release jointly. there was very little in the quarter. will it make a difference to that company if it's hillary clinton elected resident as opposed to donald trump? >> in terms of solar overall, we are very cautious. it will be difficult to produce those panels in the u.s.. the demand for storage opportunities will be slower than they are expecting. if you look at when they announced tesla energy, they missed all of the sales targets.

they are supposed to -- they will probably only do 100 million after predicting 500 million. david: what is your take away about the health of the u.s. auto industry? we are seeing both companies take different directions. ford is taking a more cautious approach. i think gm has a pressure product. that puts them in a stronger position in the near-term. they don't have to worry about competitive pressure. david: thank you very much. vonnie: we have breaking apple news -- we are getting the announcement of the new mac books. how many colors was it going to come in question mark it will be in silver and gray. the touchscreen functions will

be called touch bar. that's the command bar we had heard would be on top of the new keyboard. apple stock is not changed since the event but it's an exciting event for apple. it will have a touch id fingerprint scanner as well. david: coming up, the 11 money managers at harvard bonuses and we discuss the endowment benchmark next. this is bloomberg. ♪

david: this is bloomberg markets. let's go to julie hyman.

julie: i'm talking about pork. , chinamand in china consumes half of the world pork and has a herd of 450 million pigs. that's not enough to meet its demand. the imports are near their highest ever. chinese buyers exceed all other buyers internationally. you can see the monthly change in imports. there has been a thierd as there has been such high demand that china is bringing it into the country. of all the meat consumed in china, pork is 60%. domestic producers are having trouble keep up with demand. what will happen as a result? we will see more pork production and pork imports

continue. there is no commodity futures market for pork in china. that may be coming. the commodity exchange plans to offer it for the first time next year. here with notues having hog futures trading in china is you tend to have wide swings in prize as farmers cannot hedge against futures. here is cpi for work specifically. you can see the wide swings there have been in prices over the past five years. by extension, because china consumers, it wreaks havoc with the inflation rate at -- in china at times. bringing it back to the u.s. and contrasted, here is hog futures in the united states over the past five years. you can see quite a drop, down

47%. the dynamics are quite different. you have some exports of u.s. hogs to china as well. pork consumption in china is twice the global average. you see that impact on inflation and it will be interesting to see what happens once hog futures are introduced and the effect it might have on inflation and pricing in china. it's a little bit esoteric for the charge of the. caroline: vonnie: no comment necessary, thank you. is it a passel of page question mark it's time for the bloomberg business flash. tria says it will close manufacturing plants in pennsylvania and illinois affecting 580,000 workers. -- 580 workers. the company says it will save $50 million. volkswagen has suffered a set

back. audi has cut its outlook because of cost related to the emissions scandal and recalling cars with defective airbags. audi says return on sales will be considerably to below its target. ups is talking a lifeline to boeing. ups will deploy the front loading cargo planes. harvard university money managers collected $243 million over five years. a wide ranging study was made on the endowments. some of those surveyed complained about how easy a target they are.

they have the largest in higher education. let's bring in michael make donald joining us from boston. there was a lot of a study, give us the highlights. the headline is lazy, fat, and stupid and it's an animal house reference. the key to the study is that mckinsey came in and lifted the lid on what we haven't seen for years particularly recently. the harvard endowment consistently underperformed its peers and yet every year would say it beat its benchmark. it beat its policy portfolio. this tells us how they did that. they did it because their benchmarks were lower. we did not understand how this process worked and this lifted in lid and showed us particular with alternative assets like real estate and natural resources how they were able to beat their benchmarks

every year. they trailed their peers. david: the level of compensation stands out. of can look at the amount assets under management is $37 billion. the return was disappointing last year. talk about the compensation. this has been some controversy at harvard in years past. the faculty has talked -- has balked at how much the money managers make. michael: if you look at the tax 90% of the compensation of these top managers is performance, it's bonuses and they are based their wreck late off these benchmarks. by keeping the benchmark lower

than their peers, it automatically helps in generating more compensation. that was the other paradox we .ave seen compensation cap going up for the top people but the performance was lagging and now we understand why that was the case. vonnie: what happens now? everybody is in cahoots. who do they report to? in the defense harvard, the report was done last year when a new ceo came in. laundry.d the dirty changes ando make the report shows the changes they wanted to make that they started to make and they continue to make. in their defense, they are changing compensation, they are changing the policy portfolio

and changing the benchmark. they are going through a process to address these issues we found in this report. the return was down 2% this last year. there was a ceo that left because of medical reasons. now the head of columbia endowment is moving in. what do we know about how he plans to shape the endowment at harvard? michael: that's the great mystery. the people at harvard management say narva-geddon is coming. there is a concern he will come in and clean house. the report can amplify the concern given the compensation levels and the performance. he comes from a place where he managed things differently with a smaller team. we are talking about more than 200 people at harvard management

and they are sitting on pins and needles waiting to see what he does. vonnie: thank you so much. up, scarlet fu will sit down with jon bon jovi. his take on the state of the music industry and the importance of philanthropy. first,there you go, but this is bloomberg. ♪

david: twitter shares were rising today after the company said user growth beat analyst expectations. they plan to be profitable next year and has a revenue stream that is still growing.

about the twitter firehose. what is the twitter firehose questio? >> it's basically the data feed that twitter puts out there. anybody can essentially by this and pay for it and it costs upwards of $1 million per year for marketers want to tap into consumer sentiment or pollsters who want to know what the general public thinks about a politician. twitter is data that making $70 million per quarter on reselling to various developers. david: what are we talking about? what other information is available to people who buy this question mark >> it's not visible when you look at twitter feeds.

twitter packages a bunch of other data everything from the device you are tweeting on to the location if you make it available to your hometown and your profile. fieldss about 30 data that is part of the firehose and sent out that marketers are other entities can develop intelligence on their customers or law enforcement can develop this and package the information. the tension in your piece is between twitter trying to make money to sell this data and have to wrestle with what kind of editorial role it has. you detail vividly the kind of people and organizations and companies and governments that come to twitter looking for the data. it could raise eyebrows. >> yes, it's a point of contention for twitter.

they say they enable freedom of expression which is central to their reason for existence. at the same time, if they are itting out this data, yes, goes to marketers and people of who want to figure out what customers are inking -- are thinking. it's being used by law enforcement departments and intelligence agencies and used by some governments in regions where twitter users often get arrested for the content of their tweets. it raises interesting debate -- dilemmas for twitter. they are monetizing the twit -- the date on one hand but there are real questions about where the data actually goes and what role does twitter have in making sure it understands how that is getting used. david: it's a fascinating piece in bloomberg businessweek. vonnie: coming up, an exclusive

interview with star board ceo. his take on the markets and their latest target. this is bloomberg. ♪

>> 2:00 in new york. i am scarlet fu. welcome to bloomberg markets.

life from bloomberg world headquarters in new york. we will cover stories from san ,rancisco, detroit, new jersey toronto, and london. tesla delivers its first profit in eight quarters. we will discuss results from the latest venture that could be a challenge to over. the presidential race enters the final stretch. donald trump says he is confident he will win well hillary clinton is focused on up momentum. jon bon jovi weighing in on the 2016 race. he talked to bloomberg about his support for hillary clinton and the success of recent business ventures. updateyman giving us an on the markets. not a lot of updates on

the big picture. stocks are mixed today. we really see stocks trading in a narrow work range on earnings. just how narrow? take a look at the s&p 500. trading pretty much at a nine point range throughout the day. pretty tight trading range. qualcomm semi conductor is a deal we now know has been confirmed. qualcomm acquiring and it he for $47 billion. --acquiring nxp. of per-share pricequalcomm

u.s.ght about saying the russia'sical about

alleged influence on the election. he added the russian military threat is a myth and the country does not plan to attack anyone. in spain, the act inc. prime minister failed to get a majority in parliament in an initial confidence vote. set to take office after the second vote saturday because the agreed tohave abstain, giving him the plurality he needs. spain has been at a political of.sse form a building that survived the earthquake in italy in august crumpled after the area was hit by aftershocks. known for the distinctive red color and the city hall were spared in the summertime downquake, but came following the three tremors. footage shows piles of rubble which was almost entirely wiped out by the original 6.2 magnitude like. -- earthquake. thanl news powered by more

2600 journalists and analysts in over 120 countries. this is bloomberg. >> deutsche bank and barclays report a profit in the third quarter. both firms earnings were boosted by a much awaited jump and bond trading. rework -- report comes as they are trying to settle fines with the department of justice. putting wind into the sales of just daily, whose aggressive turnaround plan for the bank was launched this past spring. he reacted to earnings earlier today. rework>> we are very pleased we results. we set a couple of financial targets when we laid out the strategy mars -- march 1.

according with knowledge. plan to --does not holy spirit if they do, then you invest it will be a -- party.

that is your business flash update. >> shares moving on earnings news, analyst or crew -- are by theizing -- delivered carmaker. it helped boost shares. the rare -- the rally has then short-lived. is going on by going to david welch. we were talking about this yesterday. let's get an update. it seems despite the jump in profit, investors are not excited about it. reportssts have put out questioning the quality of the earnings and some of the profit gains we saw. is $139 million creditsrned by selling that they generate because they don't know gasoline powered cars

with omissions. fiat chrysler and ford motor company need to buy them to mean california rolls. almost 100% profit. without that, tesla may have broken even. still a pretty good quarter for them even if you didn't have that. it was a record amount of money they made. the other issue for the quarter was short.ending they spent under $180 million and we are going to the more than one billion that. they are expecting cash burn in the fourth quarter. a nice third quarter, but when you look at how they did it and what is coming next, we may get to normalized numbers in the fourth quarter. investors are taking a step

back. >> if you look at the top line, revenue, that saw 85% growth. what was driving that? was that an anomaly or the start of something consistent? >> zero omissions credit was the model x, their suv, is selling in good numbers. productionality and issues with that. the importance of the vehicle is it is expensive. they sell expensive vehicles. tesla is starting to get into that game. the revenue games were real.

doing pretty well in selling the stuff they have got. >> i thought it was surprising. wasthird quarter cap x about half of what analyst expected. is that not going to be enough to maintain a higher cap x level? >> they will have to spend more. plantave a nevada battery coming online. they are going to spend more than $1 billion in the fourth quarter and they have the money to do it. they don't need to raise cash to get the model through to the market. that is why they are not going to raise money in the fourth quarter. will anticipate they are going to come back to the market to raise money because they want some kind of offer. whether they can

keep cost and control as they develop this car. the solar city merger is approved. does it add to the cash or do they continue to burn cash and eat what is in the coffers? a lot determines on when they raise money and how much. tesla will have to go back to the market because they are not a self-sustaining company from a cash standpoint. >> thank you. >> villa ahead, gender parenting -- still ahead, gender parenting could kick -- this is bloomberg ♪

>> a programming note.

01.0 this weekend -- watch studio 1.0 this weekend. they cover a range of topics, including twitter's recent struggles. you and you and you open, always open to opportunities to be .ndependent scarlet: jon bon jovi is one of the top rock stars. i sat down with jon bon jovi. here is some of our conversation. this business became a place

for people to think of it as a cruise on land. they come together in this place. i was doing a lot of business with the nfl already. they came to me and asked me to be a partner in it. were doing was taking tickets out of the hands of brokers and getting them back to fans, where they were transparent. i told the league, you have to think outside the parking lot. i had their undivided attention. make theseou inclusive yet accessible? >> they are out of control. in truth, it is not for everybody. there are some people who have access to a and is some people who have access to see.

that is the truth. we offer transparency. a great example of why on location is great. , johnnytage of tickets saves up his money and takes his son and goes to the super bowl. thehinks he is going to game. the tickets were shorter than they were not available. we are telling you months in advance, where your seats are, what you paid for them and how you got them. >> this week, you denied rumors you are in the market to buy data -- by the clippers. are you in the market to buy an nfl team? >> we did make a substantial bid for the buffalo bids.

the team is not for sale. i love the game in the business of the game. i have something unique to bring to it. cds toave gone from digital downloads. people feel they should not have to pay for music. what well a successful business model look like in five years. it will be harder for them to sit in the seat and say i sold 100 million outcomes. happen is't want to people thinking the genie is out of the bottle, i don't have to

pay for it. the arts are inter-dependent. it is inspired by each other. if we continue to take it and give it away, it is going to be harder and harder for people to livingit and have a doing it. they teach us what happened in the past. they are our history lessons. movies and books and music do the same thing. >> should content and distribution go together? >> i would hate to create more and more monopolies. it is difficult. i would love to see artists be paid, copyrights be protected. this goes back generations and decades when there are brown bags and the stories of the singer getting $5,000, we own you.

album drops on november 4. after that, we will pay close attention to the election. ofhas been a vocal supporter hillary clinton. that is interesting given that one of his most famous songs is living on a prayer. those characters would more likely support donald trump. it, it when it comes to is about experience. >> i am looking forward to listening to that. trump told our next guest he is going to win the white house. does he have a path to victory? this is bloomberg. ♪

>> this is bloomberg markets. >> let's check on the headlines on first word news.

newsroompton is in our with more. >> donald trump has cut into hillary clinton's lead. trump is trailing clinton by seven thirds -- seven points. gary johnson gets 9%. jill stein is at 3%. he said there were big lines and people in his words are not happy. some of its claim machines flipped trump votes and hillary clinton. election officials are weighing the problems. is learninglande not all publicity is good. his popularity is plummeting to a record low after a publication

of a book in which she made candid comments on a wide variety of subjects. french citizens have a positive review. only 11% want him to run for reelection. the world series shifts to chicago between the cubs and the indians. att-of-seven series is tied a game aps following chicago's victory on wednesday. the game at wrigley field will be the first time the cubs have century, justin a after world war ii two. this is bloomberg. >> it is time for walk the talk. the global gender gap is getting bigger according to a report from the wbf.

the gap, in terms of participation and opportunity, sinceger than any time 2008. to talk to us more about the , the co-author of this report. what i found stunning was the u.s. rating dropped to 45th place to 20 eight place last year. >> this change has been happening for the last few years. becausethat is not there has not been progress. there has been some progress. other countries are moving ahead faster. the u.s. has outlined -- has flatlined in terms of closing the wage gap. it seems to be opening a bit. when it comes to leadership positions, women are not able to

make it into those roles. other countries are ahead. europe has moved ahead. >> to get it even, does the progress need to be made on the country who are at a higher level but have flatlined like the u.s. or does the u.s. need to come from efforts to build it up in some of the emerging parts of the world? >> two things are leading to the stalling. fourththat as the industrial revolution unfolds, technology is disrupting labor markets. women are not prepared for those roles that are growing. they are losing out on the jobs that are getting automated. low to mid skilled work is getting automated.

they are going to have to have a strategic approach to address the changes happening today and to ensure that gender equality does not widen. do most of theo unpaid work and there is not the infrastructure to balance that out, we will not see the balance in paid work. a push back against political correctness here in the united states. we see it in europe. how do you combat and rectify that kind of mindset. >> there are low income women, high income women.

time, if we look at , it isthe base of talent primarily females. countries, they are coming out of universities today. it comes down to what makes sense. regardless of whether you believe in a social cause or not, it makes sense to make sure they make it into the workforce. online, you can find your report. i can enter my information. timeto ask you about the it takes to close the gender gap. does that imply for the u.s.? changes andg else

we project these into the future, how long will it take to close the gap? i don't think it has to stay that way. the reason for putting this information forward is to motivate some change. if you break it down and look at different countries, there are parts of western europe where we might get to parity. northern cut -- the nordic countries are doing well. >> i wonder how much of it is accidental or intentional. efforts paying off? >> i think it takes some time. there is the consciousness. that is one big part of the change.

that consciousness has been built up over decades and decades. the second factor is, you need to have public policy infrastructure. effort to build a ok forand make it business leaders to take advantage of this policy. >> donald trump and hillary clinton are on the campaign trail now. seats mr. trump has to win if you want to take the white house. this is bloomberg. ♪ it will suck and

>> if you look at how the markets are faring, the dow and nasdaq is mixed. it is like yesterday where the dow did nothing. let's head to julie hyman for the sector report. >> taking a look at retailers today. is one of the worst performing of the sector spiders we track down. it has been deteriorating throughout the session. it has to do with earnings.

gnc, one of the big declines in this index. point 5%. down 22 sales falling 7%. saying our financial --.lts continue to be he is spending more on employee trading. sales were down 8.5% in the quarter. stock toan downgraded a neutral from overweight, saying the category continues to lock innovation. you have auto parts retailers led by o'reilly.

that sales rising by 4.2%. physical are earning per share forecast for the full year is short of estimates. o'reilly shares are down by nine per 10. finally, groupon, coming out announcing it will by livingsocial. groupon says the acquisition is not material. it was valued at as much as $6 billion. shares slumping in today's session. >> investors shrugged it off.

>> most polls show hillary clinton leaning nationally and in battlegrounds dates. -- battleground states. >> i think we will win in iowa, we will win in idaho. i think we are winning florida. we are going to do fantastically in pennsylvania. we will win new hampshire. there, you can say , it is don'tobs let the world take advantage of us. the message is absolutely the right message. i think we're going to win.

halperin joins us. from your conversation, did he say anything that surprised you? -- i don't think it was the answer i was expecting. relaxed, dide .nterviews i am not sure where he is heading. relatively open book. down to this

they go through various stages of grappling, knowing you cannot give up. don't know where his head is at, i know my instinct about him is if he thought his chances work as low as most people are saying they are, he would be acting a different way. click's there anything he can do to get in line with mrs. clinton? >>'s supporters say he could talk in a more effective way. he is still not great at taking the headlines and talking about them in a form that breaks through to the voters.

i think it will dominate or be part of the discussion for another day. >> does that play into his supporter's believe that the election is rigged? despite the polls showing hillary is leading, they are even though the voting has not actually begun taking place, this election will not count. that on the left in 2004. of the conspiracy theory, you will see supporters say it is not on the up and up. trump supporters and trump .imself suggests things

we are decentralized, every county has its own procedures. >> is this -- is she trying to nail in the coffin the next couple of weeks or anything on her and she could do to seal the deal? made this election and donald trump has helped them in this, in disqualifying him. she will continue to try to convince people he is not the right choice. trying to talk in a more positive way about what she will do for the country.

for now, there is a lot of confidence in the campaign. >> they were reluctant to let too much of that out. >> in part to send that message to people, don't think this is over. don't think we have one -- don't think we have won. they can't let it set in that this thing is done. they will drive that message quietly behind the scenes. to have you inside. >> a new trend is emerging. thatan sachs made a big on. we talk about multi factor investing. this is bloomberg. ♪

>> this is bloomberg markets. >> let's turn to a bloomberg exclusive. the etf industry wants to sell you -- of a dividend. all wrapped up into one fund. they are run in part by robots. a number of funds have surpassed the number of new market caps. this story is fascinating because it threatens to replace more of the managers that are there. if you ask too much of something, something has to give. up threewrapping different factories. at what point did the universe become too small? >> the investing has been around

for a long time. these concepts have year as an years of practice behind them. more and more funds are being created. they have not gotten to the point where we are concerned about crowding here. the main concern is education. do investors understand what they are buying into. it should replace your s&p 500 holding. >> why are we talking about this now? >> active managers are having a difficult run of it. people are turning to these strategies for a solve for this issue. when you think of the most

digestible way to go about that, etf's are appealing. tax benefits, lower cost. a lot of investors like that. >> you have made your career out of evaluating etf's and assessing them. what is the important question that needs to be asked? >> what is the investor's goal? it is supposed to replace and s&p 500 index fund. ison't think smart beta peeling off any --, where people actual investors. there is a group of investors out there looking to outperform. they don't want to buy and hold pre-vanguard funds.

there is a 1% of transaction costs. she mentioned tax and efficiency. 99% of equity managers have underperformed the benchmark. this is part of what you have to look at this. these things are just at the beginning of feeding into the $10 trillion in active mutual funds, not going to steal diehard, passive investors. >> the contents of these smart beta etf's change depending on what meets the characteristics. somebody who looks at etf's, what are the warning signs that maybe thesee -- things will differ from what their objectives are.

it seems like the type of thing you need to keep an eye on. >> you could argue there is an oatmeal quality. you hold these things at it turns to mush. au are able to get active in cheaper structure. you should look for volatility. cost is the most important determinant of your future performance. an average ofost 30. those of the things you should look for and dig into the perspectives and read the methodology. who were the dominating players? >> there are about 2.4 billion in their active data. a lot of people are having trouble getting to that threshold.

who is the biggest investor. we manage a lot of money, we like this idea. we need to be able to put our that in it, but we just they are looking to something. money begets money. if you have a lot of assets, you will attract more people. >> thank you. we have some breaking news. is said to be in doubt as banks are said to withdraw funding. the deal that was supposed to take place is now looking to fall apart according to people familiar with the matter. we will monitor this headline for you. ♪

>> 3:00 p.m. in new york, 12:00 p.m. in san francisco. >> welcome to "bloomberg markets: americas."

♪ york, live from new covering stories in washington and shanghai. stocks holding it in a tight range as we get mixed results from corporate america. a new ipo, a chinese delivery service to climbing in its trading debut after releasing the biggest u.s. ipo this year. we hear from the company's cfo. that is that banks are set to withdraw funding. trunk shares halted of trading after decline. oliver: it's targets have included advance auto parts and generic drug maker." --

we are in toronto for an exclusive interview. with jeff smith, the nanjing member ceo and chief investment officer of star core value. and chief-- let's begin with a couple of updates, if you don't mind. yahoo!, you played in instrumental role to sell its court assets to verizon. there is a big question mark about hacking into yahoo! what can you tell us? i am on the board, and as a board member, i am not authorized to talk about the situation. but the company is working hard to look into what happened, making sure that users are best protected, and work with our partners on verizon. >> i understand. reluctantly i will move on.

is there any update you can share with us, meetings you had with the company? how have they responded to the demands you have made? is one of the leaders is not the leader in over-the-counter drugs. we have had a good dialogue with perrigo so far. we have gotten to know the matters from the team. the relationship seems to be developing in a way that works well. as i talked about at the conference here, often times we find ourselves in a position where we can approach companies, and they will respect and appreciate the council we can provide. hopefully this will be the situation here. >> now that you feel a relationship is built in, have you asked them to go beyond prescription drugs? >> i don't know that we will go further as it relates to

discussion. but we believe the royalty stream, the company has said that they believe the royalty stream is non-core. we've had discussions relating to the prescription business, and what fits and does not fit. we want to understand the operational elephants. -picking created- >> one of the problems the company struggled with, given the work that you do in understanding balance sheets is a big debt load. point changes are you recommending that perrigo make? if they go out and sell the royalty stream-- aren't think they overleveraged, but there is an opportunity to take some debt down. >> let's move away from these stock specific examples. there is a growing sense, right

or wrong, that activist has had its moments. ome managersers -- s are putting up spectacular losses, and have had more than one bad year. some of the limited partners are real allocating -- reallocating away from activism. company managers are doing a better job. what is your view? >> i think there has been a disconnect. not all activist investors are the same. not all investors are the same. not all journalists are the same. i think that you have to look through it. i think activism became, over the last eight or so years, a catchall phrase of investors looking to push companies to change the way they operate their business. there have been some focused

more on balance sheet activism, and others focused more on operational activism. we focus much more on direct divisional activism -- operational activism, companies we think that our under earning. we create an alternative plan where they can improve revenue and profitability for the benefit of shareholders. i believe that type of operational improvement companies will always exist, will always create values. at the end of the day, you still have to buy the right companies that you think you can improve. others that may be focused on other areas might have the stock not right, which can happen, or they might be focused on elements that don't drive enough value. fortunately for us we have stuck to our knitting. we remain disciplined to our approach and are continuing to perform. >> you don't feel you are being

affected negatively by the reputational damage that something like valium does to activism? >> power investors -- our investors appreciate us for what we do. from our standpoint, i think that investors have gotten to know us over the years. 14-15 years now. our investors understand why we do what we do, how disciplined we are when it comes to companies that are undervalued, where there is a clear plastic -- clear path to implement that pla as you known,. and workp our sleeves together. >> you have taken a number of new positions. it getting harder to find

companies that need the kind of work that you do? is there less low hanging fruit then there used to be? >> we are always searching for companies. >> that is your job. >> for all of the companies we are looking for, our portfolio is roughly the same size. we are looking for a similar number of new companies each year. that number is three to seven new investments. it is not a huge number. on the one hand, you might say it will be harder to find them. for us, i do not think that is true. not only are we looking for those ideas more and more, other shareholders are looking for those ideas for us. they will call us with ideas they think are undervalued. fr final gets bigger -- our unnel gets bigger because as we

create a following of those that appreciate what we are doing, people will call us and asked us to get involved. -- ither thing i would say think you have seen a movement in the activist community more toward constructive activism. >> that is a fair way to describe it. >> there has been more of a movement where shareholders are trying not to run a proxy contest. we have done far fewer as well. but what that means is situations that appear to be more difficult, situations where a management team or a board may be more reluctant to make those changes actually sitting longer. there are not that many people willing to have the credibility to get involved those situations and are willing to run a proxy contest and replace board members if necessary. kerry that stick does not mean

we have to use it. being able to do that means that the universe is open to us. >> no investor is right 100% of the time. some of your ideas do not work. macy's is not really working out. it you look at -- if you look at macy's right now, can you say there is a point where you were wrong, or to several acts of the play have to take place? we initially invested in office depot, that was in the one dollar and change space. worked through, the merger with officemax, and proved a lot of value. we then tried to with the company with staples. >> forgive me, i meant staples. regulators had something to say about that. >> sure, on the value site. but on our influence side, we

were able to walk with the office depot team and officemax board very successfully. and we could work with the staples management team and board successfully. i can't control what happens as it relates to the government. did notin retrospect we judge the antitrust risk properly. i still believe maybe it should have gone the other way, but it didn't. >> let's talk about macy's then. i think others would like to know -- do you feel that is still an investment that could turn out well for you and your investors? or was that a mistake? >> the timing in retrospect was early. part of that had to do with the business model, as well as seasonality and whether. but yeah, we were early.

we bought in too early. i think the stock is worth more than it is today. you, continuing to hold ,nd try to insert influence monetize the value that is still trapped? >> we are not big fans of wait and see. we have a good relationship with the company. they have not done some of the things -- they are exploring the things we want them to do. they are looking into real estate. they have put a board member of the board that focuses on real estate. there is value there. how and when it gets unlocked is still open. >> since you are not big fan of patients, how much longer are you willing to be patient on that stock? >> we will see. >> at the capitalized for kids

conference,. i am here for at least one more interview. back to you for the moment. scarlet: coming up, we continue to follow the breaking news on gannett and trunk, and shares of connect down 16%. they have been drifting all day. .ore on this later this is bloomberg. ♪

bloombergis is " markets." scarlet: thanks financing hasett's takeover of trunk

backed out. down 27% in trading. it had been lower through the day. reporter broke the story and joins us now. this has to do with the valuation of the deal, doesn't it? >> i think banks got cold feet. from my sourcing throughout this process, a blood of the bigger banks did not want -- a lock of the bigger banks did not want to do with financing. some of the smaller banks were involved in financing. i can confirm those shortly. what i have been told, there were several banks that had at least nominally agreed to finance this deal. they backed out at the last minute. now the deal is very much in doubt. you can see from the shares onay, gannett was down

their earnings. there was lot of an end a broken into -- m and a broken into tronc. they are newspaper companies, and it is no surprise they are not doing well. what has happened -- this has been -- maybe a case study will be written on whatnot to do on this. this has been a very unusual process. gannett has twice raised its offer for tronc, and yet michael spero, who owns the high share of tronc, kept pushing for a higher price. can you kept -- he got one that he wanted, but he pushed the price so high that banks were unwilling to finance it. six times above a multiple, regulators look at this deal more carefully.

a life had to do with the to deterioration of the business, which is not culpable with such a high price being paid for tronc. not alluded -- that alluded to this. we are in the market to do acquisitions, but we need to make sure that from a financing perspective, it makes sense. they declined to comment for our story. obviously this is foreshadowing, our reporting is correct. -- if our reporting is correct. >> is this specifically about -- obviously this is not a good number. is this a reflection of what happens when you have market where there is so much premium acquisition baked into prices already? >> some people got caught off guard. gannett could buy other

properties, and there was a sense that they should have trond away earlier to push c's price down. eventually they reached a price that was so high that banks felt uncomfortable doing this deal. strategy, to the m&a it would be easier for gannett to say, we are uncomfortable. i think tronc's shares would have fallen. $12 and change at this point. it struck people as unusual that this deal went so far. the advisors on both sides and people at the company were very optimistic that this deal would happen after the months of time put into this. i think it will be a disappointment on both sides. scarlet: are the two sides continuing to work? >> they are. i am told this deal is not dead. but if you cannot get financing,

you have to rework the structure of the deal. it costs a lot of doubt if it does go forward. oliver: alex sherman, king of the green bay. scarlet: oh right, on bloomberg exclusive. oliver: the market down 20%. scarlet: a look at some of the bloomberg business flash. viennawill join talks in about potential corporation. an, and i surest by sean have already assured for his vision. exxon mobil has discovered up to one million barrels of oil off the shores of nigeria. the company owns 27% of the site. other partners include chevron and a chinese company. the news comes before exxon

mobil announces third-quarter results. contributed tos higher than expected profit last quarter. the company sees strong sales growth continuing even after setback in trading lung cancer patients. onstol-myers focused oncology in the face of experiments. oliver: still ahead is options insight. stocks on this for its biggest gain in weeks after reports from the close today. this is bloomberg. ♪

♪ optioning me for today's is senior market strategist at

trading advantage from the cboe in chicago. we have been talking about how volatility has fallen off. we have seen the futures curve come in, currency volatility fall -- when do you see this troubled volatility, what does this say to you? >> i would have expected at least 12 days before the election that we would see some excitement in the marketplace. but we are not seeing it right now. there is so much complacency. not complacency as if the vix was trading around the 11 or 12 level. but there is such a lack of conviction right now. what we are seeing is that most people want to stay on the sidelines, not just through the fed speak next week, but

importantly the election, then take it from there. comingboy, the curve is in. weeks ago that curve had expanded and people were expecting volatility ahead of the election. we are not seeing it. >> regarding to volatility overall, these are not relating to individual stocks right? >> absolutely. >> i know you are looking at amgen today. some of these big pharma numbers have been looking good. you felt pretty optimistic when it comes to engine. >> i really do, given the last four or six weeks that has seen the stock in a downward draft. it has formed a. ice base.-formed a n there is a very inexpensive options plate to the earnings today.

167.5 call65 to spread. 40-ish do that for seconds or so. the move is about a $4.5 move or so. heading up to 166 or 1627 is not unreasonable whatsoever. from a risk and reward standpoint, the upside is something that i want to take advantage of. the reward is great, especially given what you have said in some of the other stocks. and the technical factors behind amgen, where there has been a nice support base in the 159 and 160 area where we are rallying today. >> from a technical standpoint, how often do you do that week's option as opposed to looking out a month, for example? >> very rarely, when there is

one day left, like with amgen today. but because we are going to get the spike -- the biggest bang for the buck is doing tomorrow's option strategy because it is the cheapest one out there. i really like the one for tomorrow. >> we will see how it works out. scott bauer of trading advantage at the cboe. reportsbloomberg news citigroup traders generated $300 million in revenue. those kind of profits are rare in the post worker world, but a big boom for them. this is bloomberg. ♪

mark: time now for first word news. the latest batch of e-mails from hillary clinton's campaign shows her anger after the news broke

that she used a private e-mail server. the e-mails were those released today about wikileaks, releasing thousands of stolen e-mails from clinton's campaign chairman john podesta. bloomberg the campaign has voter suppression operations and lowering the turnout for hillary clinton. campaigns targeting white liberals and black voters -precludes- critical to -- 3 gr oups critical to clinton's path in the white house. a call center scam based in india. callers posed as tax and immigration immigrants, threatening arrest, deportation, or other punishment unless money was made. the scam trick at least 15,000 people into shelling out more than $13 million. acting spain prime minister failed to get a majority in parliament, but will take office after